Panigirtzoglou said that some indicators indicate that deleveraging is already well advanced in the crypto space. Indicators such as the net debt metric show results in this direction, he said.
The fact that the crypto companies with the stronger balance sheets are currently stepping in to curb the negative spread is helping the community, they say. This was hinted at during the lending of Sam Bankman-Fried to BlockFi. Last month, BlockFi signed a contract with FTX for a $250 million line of credit.
Venture capital, an important source of capital for cryptocurrencies, also continues to flow into the industry. About $5 billion of capital flowed into the industry in both May and June, according to JP Morgan analyst.
In just three months, the Bitcoin price has fallen by a whole 58% based on the current price. From a price of around $46,600 in early May to a low of $17,774, Bitcoin has made life difficult for investors.
